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A CoBank report expects normal grain elevator margins across most of the Midwest this year. It warns that soybean basis gains will face resistance because of ample supplies and weak demand, while corn basis stays strong on robust feed and ethanol demand.
Weak soybean demand suggests soybean basis will not rally much, which keeps soybean prices pressured at harvest. Strong corn feed and ethanol use supports corn basis and cash prices.
hpj.comHPJ StaffDec 9, 2018After 788 past bearish report events, Soybeans moved a median -0.3% over 5 sessions (47% higher; middle half -2.0% to +1.5%), and -0.9% over 20.
After 1,040 past bullish report events, Corn moved a median +0.5% over 5 sessions (62% higher; middle half -0.9% to +2.0%), and +0.8% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
